Microsoft posted strong Q2 2025 earnings, beating expectations with robust cloud and AI growth, though it faces challenges in maintaining its Cloud segment's rate of growth.

“We are innovating across our tech stack and helping customers unlock the full ROI of AI to capture the massive opportunity ahead," Microsoft CEO Satya Nadella said in a statement. “Already, our AI business has surpassed an annual revenue run rate of $13 billion, up 175% year-over-year.”

Microsoft’s earnings report for Q2 2025 was published at the close of markets today. Microsoft tallied $69.9 billion in revenue for the quarter, which beats the expectation of $68.8 billion. Microsoft’s $3.23 per share clears the $3.11 expectation.

And now, for something completely different. This quarter, an almost exclusive focus on AI and its impact on Microsoft.

Operator Greetings, and welcome to the Microsoft fiscal year 2025 second-quarter earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.